In Process - Altria's 2008 Full Year & 4th Quarter Results.



January 29, 2009

Michael E. Szymanczyk, Chairman and Chief Executive Officer of Altria. “In 2008, Altria successfully completed both the spin-off of PMI and a significant corporate restructuring, which included relocating our headquarters to Richmond, Virginia.”

“In early January of 2009, Altria completed the acquisition of UST, which transformed Altria into the premier tobacco company in the United States,” Mr. Szymanczyk said. “Our tobacco operating companies have four powerful brands, Marlboro, Copenhagen, Skoal and Black & Mild, which are leaders in the largest and most profitable domestic tobacco categories."

PM USA’s 2008 domestic cigarette shipment volume of 169.4 billion units was 3.2% lower than the prior-year period, and was estimated to be down approximately 4% when adjusted for changes in trade inventories and calendar differences. For the fourth quarter of 2008, PM USA’s domestic cigarette shipment volume of 40.8 billion units was 2.1% lower than the prior-year period, and was estimated to be down approximately 3.5% when adjusted for changes in trade inventories.

For the full year 2008, PM USA’s retail cigarette share grew 0.1 share point to 50.7%, driven by Marlboro’s strong share gains. In 2008, Marlboro achieved record retail share as the brand gained 0.6 share points versus 2007 to 41.6% as shown in Table 6 below.

Marlboro achieved strong quarterly share results in the fourth quarter, gaining 0.4 share points to 41.6%. PM USA’s overall retail cigarette share declined 0.3 points versus the prior-year period to 50.4% Va Slims and Basic sales down..

Middleton’s 2008 cigar shipment volume grew 6.2% versus the prior-year period to 1.3 billion units. For the fourth quarter, Middleton’s cigar shipment volume increased 3.4% versus the prior-year period to 311 million units.

Cigars
Middleton achieved a 29.1% retail share of the machine-made large cigar segment in 2008, up 2.5 share points versus the prior-year period.1 Middleton’s share results were driven by Black & Mild, which increased its 2008 retail share by 2.8 share points versus the prior-year period to 28.3%. For the fourth quarter, Middleton’s retail share increased 2.9 share points to 30.5%, and Black & Mild’s retail share increased 3.1 share points to 29.6% versus the prior-year period.

Altria Group, Inc. Q4 2008 Earnings Call Transcript, Seeking Alpha, 1/29/2009.

Reference: Altria Reports 2008 Full Year and Fourth-Quarter ResultsYahoo Fiance, 1/29/2009.

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